Government of India
Ministry of Commerce and Industry
Department of Commerce
Directorate General of Foreign Trade
Dated: 14th July 2025
Vanijya Bhawan, New Delhi
Trade Notice No. 07/2025-26
To,
1. Industry and Relevant Stakeholders
2. Export Promotion Councils
Subject: Inputs on Draft Internal Compliance Programme Document
for adoption by Industry for export of dual use(SCOMET) items –reg
Reference is drawn towards the mandatory requirement of Industry to comply
with export control regulations. To ensure necessary compliance, the Industry
is expected to establish a set of internal policies and procedures, also known
as an Internal Compliance Programme (ICP).
General Authorization Policies under Chapter 10 of the Handbook of
Procedures (HBP) 2023, outlines provisions for submission of Internal
Compliance Programme Document(signed and stamped by compliance
manager of the company) under which the exporter is required to submit an
ICP Checklist. In order to further standardize the elements of effective ICP, a
draft document has been prepared in consultation with Bureau of Indian
Standards (BIS).
2. In line with Para 1.07A of FTP 2023, which provides for consultation with
stakeholders during the formulation or amendment of Foreign Trade Policy,
Draft
Management
System
Requirements
for
Internal
Compliance
Programme (ICP) for Dual-use items have been formulated and are enclosed
as an Annexure to this Trade Notice. This Directorate invites views,
suggestions, comments, and feedback from relevant stakeholders, including
exporters, industry associations, and experts on the proposed amendments.
3. Stakeholders are requested to submit proposals, recommendations, or
inputs to this Directorate for examination within 10 days from the issuance of
this Trade Notice. Submissions may be made via email to scomet-
dgft@gov.in.
4. This Trade Notice is issued with the approval of the competent authority in
accordance with the provisions of Para 1.07A of FTP 2023.
(B Kruti)
Deputy Director General of Foreign Trade
(Issued from F.No.01/77/171/059/AM24/EC(S)
8
0
Annexure: Draft Public Notice for notifying the Internal compliance
Programme Document by Industry for export of SCOMET Items.
Management
System
Requirements
for
Internal
Compliance
Programme (ICP) for Dual-use items
Table of Contents
0.0 Introduction. 3
0.1 General 3
1.0 Scope. 4
2.0 Normative References. 4
3.0 Terms and Definitions. 5
3.1 Objective. 5
3.2 Organisation. 5
3.3 Responsibility. 5
3.4 Accountability. 5
3.5 Process. 6
3.6 Documented Information. 6
3.7 Monitoring. 6
3.8 Continual Improvement 6
3.9 Performance. 6
3.10 Regulation. 6
3.11 Review.. 7
3.12 Risk. 7
3.13 Top Management 7
3.14 Key Performance Indicator (KPI) 7
3.15 Value Chain. 7
4.0 Context of the Organisation. 8
4.1 Understanding the organization and its context 8
4.2 Understanding the needs of interested parties. 8
4.3 Determining the Scope of the Compliance Management
System.. 8
4.4 Compliance Management System.. 9
5.0 Leadership. 10
5.1 Management Commitment 10
5.2 Service Quality Policy. 10
5.3 Roles, Responsibilities, and Authorities. 11
5.4 Communication. 12
6.0 Planning the Service Delivery. 12
6.1 Actions to address Risks. 12
6.2 Service Quality Objectives and planning to achieve them.. 14
6.3 Planning of Changes. 14
6.4 Applicability to Sustainable Development Goals. 15
7.0 Support 15
7.1 Resources. 15
7.2 Competence. 16
7.3 Awareness. 16
7.4 Communication. 16
7.5 Documented Information. 17
7.5.1 General 17
7.5.2 Creating and updating documented information. 17
7.5.3 Control of documented information. 17
8.0 Operation. 18
8.1 Operation planning and control 18
8.2 Complaints/grievance handling. 18
9.0 Performance Evaluation. 18
9.1 Performance Review.. 18
9.2 Internal Audit 19
9.3 Management Review.. 19
9.3.1 General 19
9.3.2 Management review inputs. 20
9.3.3 Management review results. 20
10.0 Improvement 20
10.1 Continual Improvement 20
10.2 Corrective actions. 21
Annexure A: Case Study — Implementing Internal Compliance
Program in a Technology Manufacturing Company 22
0.0 Introduction
0.1 General
India’s Foreign Trade Policy (FTP) governs the export and import of goods
and services. Under the FTP, a list of items have been identified whose
export is to be controlled. This because of the dual-use character of these
items. Dual-use refers to the nature of an item, allowing it to be used in
military applications or in weapons of mass destruction (WMD), as well as in
civilian/industrial applications. The list of these dual-use items is called the
Special Chemicals, Organisms, Materials, Equipment and Technologies
(SCOMET) List. Export of SCOMET items is either prohibited for export, or
restricted, or exempted from such authorisation for export to certain
destinations with certain port-reporting and recordkeeping requirements
etc.
India is a member of three multilateral export control regimes: the
Wassenaar Arrangement, Missile Technology Control Regime, and Australia
Group, which have contributed to the goals of non-proliferation by issuing
guidelines for export controls and lists of specific items whose exports are to
be regulated.
As per our national laws and regulations, export of technology related to
items specified under the SCOMET list is also controlled and requires an
authorisation from the licensing authority.
Companies and other organisations dealing with dual-use items are
mandated to comply with export control regulations. Effective control of
exports to prevent proliferation of dual-use items is possible only if all the
stakeholders, including manufacturers of dual-use items, exporters and
other organizations/stakeholders with the technical expertise or knowledge
on these items, recognise the need for such controls and support their
compliance with all the resources available to them.
0.2 ICP and its need
The purpose of an Internal Compliance Programme (ICP) is to create a
system that help organisations operate their export activities in accordance
with Indian laws and regulations on export controls. Having an effective ICP
helps organisations integrate requirements from export controls with their
business operations.
ICP is pre-requisite for obtaining the Global Authorisation for Inter-Company
Transfers (GAICT) scheme of the Directorate General of Foreign Trade
(DGFT) and Open General Export License (OGEL) schemes of the DDP.
GAICT schemes offers significant practical benefits to compliant exporters.
It authorises the exporter to export a range of items to the exporter’s
affiliated companies in several countries. Due to its scope, applicants must
fulfil certain requirements to establish their credentials in export control
compliance. The GAICT scheme requires the applicant to implement an ICP
capable of ensuring that the global export licence is utilised responsibly.
1.0 Scope
This
document
establishes
a
comprehensive
framework
to
guide
organizations in developing, implementing, maintaining, and continually
improving effective ICPs. Its primary purpose is to help organisations
identify and minimise risks associated with export/transfer of dual-use items,
and to ensure compliance with the relevant national laws and regulations on
export controls. It is relevant for all organisations that deals in the
export/transfer of dual-use items.
2.0 Normative References
• India's Foreign Trade Policy (FTP), 2023
• Foreign Trade (Development & Regulation) Act, 1992
• DGFT’s SCOMET Policy Guidelines
• Wassenaar Arrangement Best Practice Guidelines (2011)
• Missile Technology Control Regime (MTCR) Guidelines
• ISO 37301:2021 – Compliance management systems
• ISO 31000:2018 – Risk management – Guidelines
• ISO 27001:2022 – Information security management systems
3.0 Terms and Definitions
This section provides commonly used terms in the Internal Compliance
Programme (ICP), explained in plain language. These definitions are derived
from internationally accepted standards, such as ISO 37301 (Compliance
Management Systems), ISO 31000 (Risk Management), and ISO 27000
(Information Security), and adapted for the Indian export control context.
For the purposes of this document, the following terms and definitions apply.
ISO and IEC maintain terminology databases for use in standardization at
the following addresses:
7. ISO Online browsing platform: available at https://www.iso.org/obp
8. IEC Electropedia: available at https://www.electropedia.org/
3.1 Objective
An objective is a specific result an organisation aims to achieve.
